Russia and China sign gas pipeline deal

Russia’s Gazprom has signed a gas pipeline agreement with Chinese state-owned company CNPC. It includes the design and construction of the cross-border section of the ‘Power of Siberia’ pipeline, including […]

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By Priyanka Shrestha

Russia’s Gazprom has signed a gas pipeline agreement with Chinese state-owned company CNPC.

It includes the design and construction of the cross-border section of the ‘Power of Siberia’ pipeline, including its submerged crossing under the Amur River.

“The document was signed within the Sales and Purchase Agreement for the Russian gas supply to China via the eastern route,” Gazprom stated.

The two companies also agreed on a three-year Memorandum of Understanding in the oil sector for exploration and production of reserves in Russia and China.

“The Memorandum envisages the co-operation in procurement of equipment and technologies for exploration, production and processing of hydrocarbon feedstock as well as joint fundraising campaigns for the future partnership,” the Russian energy giant added.

The Chinese party confirmed the initial plan to lay one gas pipeline with an annual capacity of 30 billion cubic meters.

The companies are also looking into the prospects of constructing a second project and doubling the deliveries.

Russia started building a gas processing plant in the country in October.